With the introduction of the Companies Act, 2013 the concept of OPC(one person company) was introduced to support entrepreneurs who on their own are capable of starting a business by allowing them to create a single person economic entity. Only one single member is required to incorporate an OPC, which is the biggest advantage of OPC over private limited companies & partnerships. Similar to a Company, an OPC is a separate legal entity from its members, offers limited liability protection to its shareholders, is easy to incorporate and continues in the foreseeable future.
This is a new concept introduced by the companies’ act 2013 and is available for a business with a capital up to Rs. 50 Lacs and a turnover up to Rs. 2 Crore. The one person company has some benefits in the companies act in terms of non-applicability of some provisions of the new act.
